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Magmatic thinks gigantic

by Michael Washbourne

agmatic Resources Ltd will soon start drilling what it Richardson was quick to dismiss any suggestion his company’s
Mbelieves is a Boda-lookalike target in the prolific East projects were a “nearology” play to Boda. Magmatic has been
Lachlan Fold Belt in New South Wales. active in the East Lachlan Fold Belt since acquiring the ground
Alkane Resources Ltd set market tongues wagging in from Gold Fields Ltd in 2013.
September when it reported a juicy intercept of 502m @ 0.48 At the time, Magmatic was a private entity and remained so
g/t gold and 0.2% copper from 211m at the Boda prospect, until undertaking a $4 million IPO in May 2017. Gold Fields is
prompting a share price run from 37.5c to 86.4c. still a 14% shareholder of the Perth-based company.
Magmatic benefited from the proximity of its projects to Boda “All the reasons that we liked the projects – and now are being
with an equally impressive share price run from 1.8c to a peak rewarded – are still there. What we inherited from Gold Fields
of 20c during November. That same month the company is the most dominant land position in the region,” Richardson
raised $2.2 million and is now planning to drill its Lady Ilse said.
prospect, about 6km west of Boda, this quarter. “Most importantly, we’re on the two most important geological
Following the capital raising, Atlas Iron founder David features which are the two volcanic belts; the Junee-
Flanagan joined the company’s board as a non-executive Narromine that hosts the Cowal, Northparkes and Tomingley
director and Peter Duerden was appointed managing director, mines; the other one is the Molong and that hosts the giant
with David Richardson elevated to executive chairman. Cadia Valley complex.”
Speaking to GMJ after a week-long roadshow on the east Richardson also pointed out that several majors, including
coast of Australia, Richardson was confident his company Fortescue Metals Group Ltd, Freeport-McMoRan Inc and
could deliver further value for Magmatic shareholders. Newmont Goldcorp had entered the East Lachlan prior to the
“We’ve got a very deep portfolio of advanced targets that the Boda discovery, such was their confidence around the region’s
market has now recognised through the Alkane discovery at prospectivity, in particular the opportunity to find porphyries.
Boda,” he said. “In this region, the porphyries occur in clusters and the
“Alkane went from $180 million [market cap] to over $400 opportunity is that you get multiple deposits,” he said. “Cadia
million following the Boda discovery. Our Wellington North Valley is six mineralised areas and at Northparkes they mine
project basically encircles Alkane’s tenement and we’ve got five physical deposits. So, with the Alkane hole, the real
multiple targets within 2-8km of the Boda discovery with the exciting thing is it may just be one deposit.”
same geological signatures.” Lady Ilse and Rose Hill, about 8km west of Boda, are the
two most advanced prospects in Magmatic’s
portfolio. Previous drill hits at Lady Ilse include
78m @ 0.2 g/t gold from 27m (including 10m
@ 0.25 g/t and 18m @ 0.48 g/t), 22m @ 0.54
g/t from 18m and 21m @ 0.56 g/t from 81m.
Richardson said the upcoming drilling at
Lady Ilse would target the western edge of
the intrusion, based on similarities already
observed between that prospect and the
Boda hole.
“We’re really hopeful that we’ll have similar
results,” Richardson said.
“Discovery is all about building blocks and
Alkane have been exploring the North
Molong for over 10 years. It’s no surprise to
us this discovery happened and that’s why
we’ve been there too.
“Most importantly, we don’t think this will be
a one-hole wonder because we have a very
deep portfolio of advanced targets.”
Magmatic is gearing up for a new drilling campaign at Lady Ilse, part of its Wellington
North project in the East Lachlan Fold Belt, NSW

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